BOJ Raises Interest Rates to 31-Year High Amid Market Expectations
The Bank of Japan raised interest rates to a 31-year high of 1.25% on Friday, in line with market expectations.
The decision was made by a 7-2 vote, with Board members Toichiro Asada and Ayano Sato dissenting from the decision.
Nomura Securities' Chief Macro Strategist Naka Matsumawa attributed the yen's decline to the two dissent votes, saying 'it's a knee-jerk reaction.'
Ray Attrill of National Australia Bank noted that the BOJ has underwhelmed expectations and expressed concerns about further rate hikes.
'It's hard to believe that just on the back of one quarter-point the (US) Treasury Secretary is going to be jumping for joy and as willing to replicate what they did in August,' Attrill said, warning of potential intervention and a stronger dollar-yen exchange rate.